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Sidley AI Monitor

Latest AI Developments

Jurisdictions and Industries:

North America
On October 22, 2026, Pa. Gov. Josh Shapiro (D) signed S.B. 806, the Artificial Intelligence Deceptive Advertising Act. Advertisers cannot knowingly, recklessly, or willfully disseminate an ad that uses AI-generated or AI-modified content in a way that creates a false consumer perception about the nature, origin, or authenticity of the goods or services, unless the ad clearly and conspicuously discloses AI use. Evidently fictional content, parody, satire, commentary, criticism, and text-only content are exempt.
October 22, 2026
North America
N.J. Asm. Andrew Macurdy (D) introduced A.B. 5711 (identical to S.B. 4809) on October 22, 2026, which would prohibit a defendant who developed, modified, or used AI from defending a civil action on the ground that the AI autonomously caused the plaintiff’s harm. Other defenses, including those based on causation, foreseeability, and comparative fault, would remain available. The same bar would apply in criminal prosecutions.
October 22, 2026
North America
Pa. State Rep. Tarik Khan (D) introduced H.B. 2879 on October 21, 2026, which would broadly regulate online gambling and, among other things, prohibit operators from using AI or other automated decision-making systems to target inducements to players based on their losses, gambling intensity, or risk of problem gambling. Operators would also have to use state-approved monitoring software, which may use AI, to identify at-risk players. Consumers would have a private right of action, alongside Gaming Control Board enforcement.
October 21, 2026
North America
N.J. Asm. Anthony Verrelli (D) introduced A.B. 5676 (identical to S.B. 4712) on October 19, 2026, which would impose a 10% tax on the value of computer processing performed for businesses that develop or operate commercially available AI systems for New Jersey business use, measured by tokens used. The provider performing the processing, including a business’s in-house processing, would pay the tax, with a right to pass it on to customers. Revenue would fund retraining for AI-displaced workers.
October 19, 2026
North America
D.C. Councilmember Christina Henderson (I) introduced B. 858 on October 9, 2026, which would establish the Restricting Editing and Alterations in Listing Photos Amendment Act of 2026. Real estate listings with images altered by AI or photo editing software (beyond routine adjustments) would be required to disclose the alteration, describe material differences, and include unedited versions. Consumers and the Attorney General would enforce the requirement under D.C.’s consumer protection law.
October 9, 2026
North America
D.C. Councilmember Christina Henderson (I) introduced B. 853 on October 5, 2026, which would establish the Transparency in Downcoding Amendment Act of 2026. Health insurers, including third-party administrators, would be prohibited from using automated tools, including AI, to downcode claims, and each downcoding decision would require documented review by a D.C.-licensed clinician in the treating provider’s specialty. Insurers would also be required to notify the physician of each downcoded claim and offer providers an appeal process.
October 5, 2026

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